Senate debates

Thursday, 22 March 2007

Questions without Notice

Telecommunications

2:23 pm

Photo of Steve HutchinsSteve Hutchins (NSW, Australian Labor Party) Share this | | Hansard source

My question is to Senator Coonan, the Minister for Communications, Information Technology and the Arts. Does the minister recall the Prime Minister’s promise during the 2004 election campaign, when he stated:

We will make sure Australian businesses and families have access to the modern communications tools they need in the 21st century to live and work smarter.

Why then does the World Economic Forum rank Australia’s available internet bandwidth just 25th and the Australian government’s efforts at promoting information technology just 53rd in the world? Minister, are Australians not missing out on the tools they need for the 21st century to live and work smarter, because of the government’s failure to deliver on this important economic issue?

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | | Hansard source

No, I certainly do not agree with the proposition that this government has not dealt with the need to allow people to live and learn smarter by reference to accessing broadband. I think that sometimes we get a bit mixed up, shall we say, with some of these figures that go around. Australia really is about comparable to Germany, France, the UK and the United States and has take-up that has grown faster than in any other OECD country except Denmark in the 12 months to 30 June 2006. These are important figures, because residential take-up of broadband increased by 63 per cent in regional areas and 41 per cent in metropolitan areas in the year to September 2006.

A major factor in broadband take-up has been price. That is one of the reasons why this government has been keen to ensure that—notwithstanding the preparedness of the Labor Party to roll back competition, to interfere in markets—the market will deliver, because that is really what gives consumers the best choice and keeps prices down. It also provides the best incentive for investment. It is important to know that the Australian government has continued to invest—

Photo of Paul CalvertPaul Calvert (President) Share this | | Hansard source

Senator Campbell, come to order!

Photo of Paul CalvertPaul Calvert (President) Share this | | Hansard source

Senator Campbell, come to order!

Photo of Paul CalvertPaul Calvert (President) Share this | | Hansard source

Senator Campbell, I will not ask you to come to order again! Senator Coonan, do you wish to continue?

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | | Hansard source

Yes. Thank you, Mr President, I do. I was just having difficulty hearing. I did want to point out that this government has invested about $4 billion in upgrading telecommunications services since we have been in government. Just since I have been in this portfolio, I have announced over $3½ billion to ensure that Australia is certainly not left behind but is able to compete effectively with broadband.

We have connected over a million premises and, with small businesses, we have been very keen to ensure that they have been able to access what they need to live, work and do business in rural and regional Australia. We currently have a new plan, a new broadband rollout and open access arrangement for rural and regional Australia that apparently the Labor Party would simply just roll over or cancel. The people of Australia need certainty, and the best that the Labor Party have been able to come up with is a pie-in-the-sky, uncosted proposal that is rising at about a billion dollars every 12 hours. They have no idea how to deliver it and no idea how to actually use the market, where the market will work or how to invest in rural and regional Australia for services that are absolutely needed.

It is also important to know that Australia’s ICT capacity has been underpinned by access to fast broadband. It has contributed between 50 per cent and 80 per cent of productivity growth to the services and manufacturing sectors over the last two decades. It would not have been able to do that if this government had not, as new technology became available, enabled the conditions for broadband to be made available. So we will continue to ensure, with our Australian broadband guarantee, that all Australians, irrespective of where they live, will be able to continue to access services and will be able to do it even in the most remote parts of Australia.

Photo of Steve HutchinsSteve Hutchins (NSW, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Was Robert Gottliebsen not correct when he said today:

The Howard government have been caught hopelessly wrong-footed with outdated telecommunications regulations.

Is it not true that the Howard government’s backward-looking regulation is holding back the important infrastructure investments needed for Australia’s future economic prosperity?

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | | Hansard source

No, that is not correct. The Australian government’s regulatory regime for the telecommunications sector is enabling unprecedented investment in the sector. I think when Labor was in we had a cosy duopoly. We now have over 150 telecommunication providers providing choice to consumers and keeping prices down and a competitive environment that enables people to invest with certainty and to continue to do so with appropriate incentives for the government in underserved market areas. It is absolute nonsense to suggest that the regulatory environment is responsible for commercial decisions of operators.